RE:How Does Simulated Data Feed Work?

[AutoTraderDev]

Support,

I'm curious to understand how the simulated data feed generates data. The help file says:

This connection is a random internally generated market and has NO correlation to real market data *

However, I read in another post from Ninja support that:

"What you can do as well is to connect to the Simulated Datafeed connection under the File menu. For this you don't need any account with a datafeed provider. However keep in mind that this data is not Live and does not reflect any actual market prices. This is canned data used for practice and training purposes."

Is the data random or not? If it is random, why do you have to select an instrument for the chart, and how does it generate level II data?

Just curious to know what can be done with this data feed based on what it is supposed to represent.

Thanks,
AutoTraderDev

[NinjaTrader_Brett]

Hello,

Thanks for the forum post.

When you connect to the simulated data feed you get a trend slider that will pop up on your screen. With this slider you can choose to generate higher prices or lower prices. It is up to you how to generate the data.

It is just a random generator that will try to replicate some market jitter.

Let me know if I can be of further assistance.

[AutoTraderDev]

Brett,

If I leave the slider at neutral, does that mean that the data feed produces truly random noise?

I understand that the algorithm is proprietary to Ninja, so you don't have to explain how it works, but I'm just trying to understand if the data can be considered nothing more than random coin flips. If so, that would save me a lot of time producing random data on a spreadsheet for analysis.

My interest is in comparing random data to real market data. It's been known for a long time that any pattern you see in market data can be found in random data, and the implication is that if you can trade random data profitably, you can succeed in trading the market.

When looking at the simulated data feed with the slider at neutral, the data looks very convincingly like market data, with tops and bottoms, and supply and demand areas, and so on. If the data is really random, that's important to know. Any further information that you can provide would be greatly appreciated.

Thanks,
AutoTraderDev

[NinjaTrader_Kyle]

Hi AutoTraderDev,

Thanks for your patience while I confirmed this with development.

When the trend slider is in the neutral position, the data is random.